CHARLOTTE, N.C. (AP) — A North Carolina man is pleading guilty to bilking more than 100 people in a $6 million investment scam.
Fifty-eight-year-old James Shepherd of Vass pleaded guilty Monday to securities fraud. He faces a maximum of 20 years in prison and a $5 million fine.
Federal authorities say Shepherd has agreed to pay full restitution to his victims. A sentencing date is pending.
Authorities say Shepherd in 2006 began promising investors high returns from his investment fund. Prosecutors say Shepherd instead began diverting money for his personal use, including creating a newsletter that offered investment news and advice to thousands of subscribers.
Shepherd also filed false financial statements to investors. Shepherd claimed a $6 million cash balance in December, but authorities say the fund had less than $100,000.
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